Charging the right taxes on your invoices keeps your business compliant and saves you from correcting billing errors later. Thryv Business Center lets you configure your tax settings once so that the correct taxes are applied automatically to every estimate and invoice you create. This article covers how to set up taxes, how to choose between tax inclusion and exclusion, and how to configure taxes correctly based on your country.

Note: Tax settings vary by location. To determine the specific taxes that apply to your business, consult with a tax professional or accountant familiar with the regulations in your area.

This article covers the following:

• How to access your tax settings
• How to choose between excluding and including tax in your prices
• How to add, apply, and delete taxes
• How to configure taxes for the United States
• How to configure taxes for Australia
• How to configure taxes for Canada
• FAQ

How to Access Your Tax Settings

To access your tax settings, click Settings in the left-hand navigation, then click Billing and Invoicing, then click Taxes. The Taxes page is where you set up all taxes that will be used on your estimates and invoices.

How to Choose Between Excluding and Including Tax in Your Prices

At the top of the Taxes page, use the radio buttons to select whether your prices will exclude or include tax. The option you choose determines how tax appears on your estimates and invoices.

Exclude Tax means the price of your product or service is listed without tax, and the tax amount is added on top of the price at the time of checkout. This is the standard practice in the United States. If you use an accounting app integration such as QuickBooks, Exclude Tax is recommended. Note that if you use an accounting app with this option, you may need to manually update your taxes within the accounting app.

Include Tax means the tax is built into the price of the product or service, so the listed price already includes the tax amount. This is the standard practice in Australia, Canada, and other countries that use GST or VAT.

How to Add a Tax

To add a new tax, click Add Tax on the Taxes page. A new line will appear where you can enter the tax name and tax rate. After entering the tax name and rate, click the Apply to new items dropdown to select which types of new items the tax should apply to automatically. 

Selecting an item type means the tax will be applied automatically to any new items of that type created going forward.

How to Delete a Tax

To delete a tax, locate the tax you want to remove on the Taxes page. Click the three-dot menu icon next to the tax, then click Delete Tax.

How to Configure Taxes for the United States

For businesses operating in the United States, taxes are typically excluded from the listed price and added on top at checkout. Use the Exclude Tax option on the Taxes page. For deposits on estimates in the United States, deposits are generally not taxed at the time the deposit is collected. If the deposit is refundable and will be applied toward the final payment, sales tax is typically charged on the full total when the goods or services are delivered and the final payment is made. Consult a tax professional to confirm the correct treatment for your specific situation.

How to Configure Taxes for Australia

Businesses registered for Goods and Services Tax (GST) in Australia are required to include their Tax File Number (TFN) or Australian Business Number (ABN) on all invoices. To add your TFN or ABN to your invoices by default, click Settings in the left-hand navigation, then click Payments, then click Invoices and Estimates. Locate the Your business info ("From") section and enter your TFN or ABN. The TFN or ABN will appear on all future invoices and estimates automatically.

For deposits on estimates in Australia, tax in Thryv Business Center applies to the invoice total only and does not apply to the deposit amount itself. The necessary GST is accounted for in the invoice total. The deposit is not treated as a separate taxable item in Thryv Business Center. Consult a tax professional to confirm the correct GST treatment for deposits in your situation.

How to Configure Taxes for Canada

In Canada, deposits on an estimate or quote are generally subject to tax. When a business receives a deposit, the deposit is typically treated as payment toward future goods or services and is subject to the same tax rules as the final sale. In Thryv Business Center, tax applies to the invoice total only and does not apply to the deposit amount itself. The necessary taxes are accounted for in the invoice total. The deposit is not treated as a separate taxable item in Thryv Business Center. Consult a tax professional to confirm the correct tax treatment for deposits in your province.

Frequently Asked Questions

Can I apply different taxes to different products or services?
Yes. When adding a tax, use the Apply to new items dropdown to control which item types the tax applies to automatically. You can also apply taxes manually to individual items when creating estimates and invoices.

Does this article cover adding products to Thryv Business Center?
No. This article covers tax settings only. For instructions on adding your product list, see How to Add Products to Thryv Business Center.

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